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Mergers & Acquisitions Trends in Nigeria's Economy

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Mergers & Acquisitions in Nigeria's Dynamic Market

In 2025, Nigeria™s M&A market is at an intersection of forces, as regulatory requirements, economic restructuring, and industrial consolidation converge in what will be the largest economy on the continent. With more than 220 million people and a GDP above $ 440 billion, Nigeria is Africa™s most populous country, and its economy is also the largest; but beyond the local opportunity, Nigeria offers access to the bigger West African Economic and Monetary Union (WAEMU) market of over 400 million consumers.

The country™s financial services grew by 30% in 2004 as a result of 6 billion dollars of foreign investment, which opened the way to unprecedented merger and acquisition activity in various industries. Combined with the Central Bank of Nigeria™s stringent recapitalization policies, this path of growth has led to a flurry of predicted strategic mergers, which many say will change Nigeria™s corporate landscape in the next three years.

This convergence point of corporate acquisitions in Nigeria highlights an intriguing story: business consolidation in Nigeria is not an impending threat but a revitalizing trend. There are now players leading the game, especially local companies, as the global giants relocate onshore assets and take advantage of such shifts to increase their local presence.


 

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Oil & Gas: The Powerhouse Segment of Nigerian Investment Deals

Shell to Renaissance Consortium “ $2.4B Deal

The 2024 megaproject: a group of five indigenized oil companies (ND Western, Aradel, Petrolin, First E&P, Waltersmith) purchased Shell™s onshore SPDC holdings for an upfront $2.4 billion and $1.1 billion deferred, a total of $2.8 billion. December 2024 is the date of final approval. After a long wait for regulatory approval, the eventual go-ahead showed a revived potential for cross-border M&A in Nigeria.

 

TotalEnergies Stake Selloff “ $860M

In July 2024, Chappal Energies purchased TotalEnergies' 10% interest in the SPDC™s JV- an 860 million dollar transaction that gave them 18 crude and gas licenses. This, in turn, made the JV wholly Nigeria-owned, and part of a larger trend toward Nigerian private equity ownership.

 

Exxon to Seplat “ $800M

Exxon Mobil™s onshore business unit sale to Seplat was completed in December 2024 for $800 million and is in line with the government™s desire to open up the financial sector M&A for local investors while still maintaining offshore operations as an attractive option for IOCs.

 

Oando™s NAOC Acquisition “ $783M

Oando™s purchase of Eni™s NAOC in August 2024, for $783 million, was awarded the "Deal of the Year" and is significant because it represents major growth in corporate acquisitions in Nigeria in the indigenous oil sector.

 

Equinor Exit “ $1.2B

Equinor™s exit after three decades, divesting its interest in Agbami to Chappal Energies for $1.2 billion, reaffirms the trend of IOCs leaving and Nigerian companies emerging in the consolidation of business in Nigeria.

 

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Beyond Oil & Gas: Diversifying Sectors & M&A Strategy Nigeria

Banking Consolidation

In response to Central Bank re-capitalizations, the August 2024 Unity Bank- Providus bank merger was supported by a ₦700 billion CBN facility, which was the first time there had been mergers in the banking sector in the previous five years. Meanwhile, FBN Holdings sold its merchant bank, FBNQuest, to EverQuest Acquisition LLP, for which ₦465 billion worth of assets were utilized in the sales transaction.

These actions highlight the fact that the trend in M&A in Nigeria now is for M&A in the financial sector, as financial sector consolidation leads to financial robustness.

 

Fintech & Tech: Innovation-Led M&A

Nigeria™s digital economy is driving new activity. Interswitch-M-Kudi will likely merge the provide digital payments for rural clusters. Indeed, Moniepoint™s $110 million Series C raising from Google Africa and Verod, which also led to the company achieving unicorn status, illustrates the clout of Nigerian funding rounds within the fintech space.

 

Consumer & Agri: Local Takes Over

In June 2024, Tolaram purchased Diageo™s 58% share of Guinness Nigeria for ₦104 billion (~$248 million).

Saroafrica International simultaneously gained controlling interests in Presco Plc (~$125¯million transaction) and, via Oak and Saffron SPV, began its regional expansion by placing a bid for GOPDC in Ghana.

 

Agribusiness & Others

Saudi SALIC™s $1.24 billion investment for a 35% stake in Olam Agri is a clear indication of the state of agricultural cross-border M&A in Nigeria. Several tech/energy/fabric combinations were also approved in 2024.

 

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Regulatory & Capital-Raising Context

As the spectrum has been expanded to most industries, the SEC has also not halted M&A deals in 2024, where 11 deals worth 320 billion N (~420M USD), of which the Guinness Nigeria deal was a part.

- Nigeria™s capital markets were thriving: a total of ₦3.68 trillion was raised in 2024 (₦59.8 billion was fixed income while ₦3.62 trillion was for equities), and ₦446 billion was filed for in early 2025.

- A larger recapitalization drive: led to mergers and acquisitions in the banking industry, as the CBN announced it would require significant capital by March 2026.

- Electronic regulation: the SEC and FCCPC became more stringent, embarking on a path of examining corporate acquisitions in Nigeria in the telecoms, food & beverages, and tech sectors in order to protect competition.

 

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Applying M&A in Your Business Strategy

If you are a strategic or financial buyer/investor, or advisor looking to find deals to invest in Nigeria, these are some steps you can consider taking:

1. Market & target screening: make use of sophisticated data analytics to isolate targets with high earning potential, sustainable business models, and clear avenues for expansion.

2. Regional comps Valuation: based on comparable deals in Nigeria and other markets (Kenya, South Africa) while factoring for country risk, industry characteristics and capital structure.

3. Deal structuring innovation: Matching local currency restrictions, tax positioning, repatriation policies, and exit preferences through the incorporation of earn-outs, convertible characteristics, and tranches in foreign currency.

4. Innovations around deal structuring: in alignment with local currency restrictions, taxation, repatriation, and exit, also use earn-outs, conversion options, and foreign currency tranches.

5. Integration blueprinting: Work out the goals of the merger in advance, and bring together leaders of both organizations to jointly develop the plans for the merger to take place in the areas of tech, human resources, marketing, and operations.

6. Ongoing stakeholder outreach: mobilize regulators, voices in the community, and consumer advocacy groups, particularly on mergers and acquisitions that have a systemic effect, such as with banks or energy, to build confidence and diminish lags.

 

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Key Trends in M&A Strategy in Nigeria

Indigenization of Assets: As Shell, Exxon, TotalEnergies, Eni, and Equinor have all publicly departed from onshore operations, domestic companies are capitalizing on the opportunity to increase control of the upstream through consolidation in Nigeria.

- Regulatory Consolidations Capital requirements: within the banking system, particularly, are forcing institutions to merge or spin-off to reach size and compliance with regulations.

- Sectoral Diversification: The continued dominance of energy is somewhat counterbalanced by the emergence of activity in sectors such as fintech, agriculture, consumer goods, and renewable energy, all pointing to a more diversified economic ecosystem.

- Cross Border Intentions: As exhibited in Access Bank™s Ugandan and South African expansion, and Oando™s mobilization in the energy sector, Nigerian™s Nigeria™s M&A strategy is starting to be taken beyond its borders.

- Private Equity & Growth Capital: Significant growth rounds such as Moniepoint and Olam Agri highlight the role of Nigerian private equity in these digital and agribusiness scale-ups.

- Changing Regulations: The SEC, FCCPC, CBN, and CAMA 2020 have created new approaches to how Mergers and Acquisitions in Nigeria should be viewed, as the firms must now comply with issues regarding approval to competition, funding, and shareholder issues.

 

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Conclusion

The landscape of the Nigerian M&A market is changing. The local mega acquisitions, bank mergers, and the center of the fintech industry are changing the picture, where the amount of deals is at a decade high.

Main takeaways:

Energy exit = Local entry: International oil firms are exiting onshore, while Nigerian companies are entering, consolidating business in Nigeria.

- Regulatory congruence as a motive for scale: CBN, SEC, and FCCPC moves are guiding consolidation into stronger, more compliant entities.

- Digital finance and agribusiness diversification: Aside from oil & gas, Nigeria™s M&A plans are based on tech, fintech, agriculture, and renewable energy.

- Capital markets driving the momentum: Equities and debt placements remain financing for growth, both locally and regionally.

- Cross-border visions: as Nigerian firms are starting to expand their footprints, both financially and operationally, in the rest of Africa, defining what a true market entry in Nigeria means.

But, the Nigerian M&A story is not one filled only with transactions that make the headlines, it is one of ownership transfer, regulatory advancements and strategic reshaping. As the previous era of cross-border transactions transitions into one led by Nigerian private equity firms with Nigerian M&As in a sector-diversifying Nigeria, one that will, finally, cross the jargon and cliché-laden Rubicon into a sustainable future. Thus, mergers & acquisitions in Nigeria today are transactions in which the exchange is not financial; rather, they are trajectories of business transformation, influenced by the agency of local actors, the regulatory system in place, and the larger economic and developmental architecture that is being created.